|I decided to buy some MECA yesterday and have bids in at lower prices. This company has been a dog of a stock, but owns several valuable properties. The deciding factor for me to purchase is the fact that Frank Stronbach is investing 20 million dollars of family money at this point of the game. The price of the private placement will be average of the share price in the ten days of trading after the reorganization announcement. The twenty million investment is a good indication that the Strombach family is serious about extracting a higher value from the company.|
From the press release:
arranging $100 million of funding to address immediate liquidity concerns and provide sufficient time to implement the plan, comprised of: (i) a $20 million private placement of MEC Class A Subordinate Voting Stock ("Class A Stock") to Fair Enterprise Limited ("Fair Enterprise"), a company that forms part of an estate planning vehicle for the family of Mr. Frank Stronach, the Chairman and Interim Chief Executive Officer of MEC; and (ii) an $80 million short-term bridge loan from a subsidiary (the "MID Lender") of MI Developments Inc.
("MID"), MEC's controlling shareholder
The company is going to look at everything, except for Golden Gate Fields, which is a valuable property.
Here is an example of a property that will go on the auction block.